Press Release
May 15, 2015

Bam: More Power to the Consumers in Revised Consumer Act

A senator has submitted a measure seeking to amend the 23-year-old Consumer Act of the Philippines to give it more teeth and make it attuned to the present needs of consumers amid the country's rising economy.

"In order to build stronger commercial systems and maintain thriving markets, there is a need to bolster the rights of consumers and we need to do this at the soonest possible time," Senator Bam Aquino said in his Senate Bill No. 2699.

"The measure aims to amend the 1992 Act in order to address the current issues facing our consumers and markets," added Sen. Bam, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

If passed, the Department of Trade and Industry (DTI) will be authorized to close down any establishment caught in the act of selling, distributing, manufacturing, producing, displaying or importing hazardous and defective products.

In case of product recall, manufacturers of defective products will also be required to give notice to every person to whom such consumer product was delivered or sold to.

The measure also raises the administrative fines against erring manufacturers from P50,000 up to P10 million, depending on the discretion by the Trade Secretary. The current law imposes a fine of P500 to P300,000.

"The amount of fines shall be computed on the five percent of the gross value of sales of the consumer product and services subject of a consumer complaint," said Sen. Bam.

In addition, foreign products with labels written in foreign characters/language will be allowed entry into the country, provided they have a corresponding English or Filipino translation.

In providing service or repair, a manufacturer must inform the consumer about which particular part of the goods needs to be replacement or repair.

"Under this measure, the consumer will be given an option to replace only the damaged parts," Sen. Bam said.

"We need to empower our consumers in today's markets since we have so many diverse products and services to choose from," said Sen. Bam.

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